Just as Goldman has predicted [8] (and the market had seemingly hoped would not happen), Janet Yellen, in her first speech as new Fed chair "stayed the course" on the Taper:
- *YELLEN SAYS FOMC LIKELY TO CONTINUE QE TAPER IN MEASURED STEPS
- *YELLEN SAYS RECOVERY IN LABOR MARKET IS `FAR FROM COMPLETE'
- *YELLEN SAY FED TO `CONTINUE TO MONITOR FOR EMERGING RISKS'
- *YELLEN: MAIN RATE LIKELY TO BE LOW WELL PAST 6.5% JOBLESS RATE
Of course, the Q&A (and hawkish follow-up panel) may well be the "common knowledge" setting moment for today but for now, the Taper is on and forward-guidance
Pre-Yellen: S&P Futs 1801, Gold $1285, 10Y 2.68%, USDJPY 102.3
On Growth...
*YELLEN PREDICTS MODERATE GROWTH IN ECONOMY, JOBS IN 2014, 2015
*YELLEN SAYS ECONOMY GAINED MORE TRACTION IN 2ND HALF 2013
On Inflation...
*YELLEN EXPECTS INFLATION TO MOVE TOWARD 2% `OVER COMING YEARS'
*YELLEN SAYS SOME SOFTNESS IN INFLATION LIKELY TO BE TRANSITORY
On Jobs...
*YELLEN SAYS `TOO MANY AMERICANS REMAIN UNEMPLOYED'
*YELLEN SAYS UNEMPLOYMENT RATE DOESN'T GIVE FULL VIEW OF JOBS
*YELLEN SAYS RECOVERY IN LABOR MARKET IS `FAR FROM COMPLETE'
*YELLEN: MAIN RATE LIKELY TO BE LOW WELL PAST 6.5% JOBLESS RATE
*YELLEN SAYS FOMC LIKELY TO CONTINUE QE TAPER IN MEASURED STEPS
*YELLEN REITERATES SHE `STRONGLY' SUPPORTS CURRENT FOMC POLICY
On Taper
*YELLEN `COMMITTED TO ACHIEVING BOTH PARTS OF OUR DUAL MANDATE'
*YELLEN SEES `GREAT DEAL OF CONTINUITY' IN MONETARY POLICY
*YELLEN SAYS BOND PURCHASES BY FED `NOT ON A PRESET COURSE'
*YELLEN: HIGHLY ACCOMMODATIVE POLICY APPROPRIATE AFTER QE ENDS
On EM Risks...
*YELLEN: GLOBAL MARKET SHIFTS NOT A BIG RISK TO U.S. OUTLOOK
*YELLEN SAY FED TO `CONTINUE TO MONITOR FOR EMERGING RISKS'
Wordcloud of Yellen's speech:
[9]
Full prepared remarks (pdf [10])